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New Zealand: Provisional value system for imports, new customs law

New Zealand: Provisional value system for imports

A new customs law is expected to be effective in New Zealand beginning 1 October 2018. The new measures generally are viewed as being “business friendly,” but there are some measures that warrant closer attention.


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The new customs law would change the post-importation adjustment regime. Under current law, post-importation adjustments are typically disclosed by filing regular reconciliations (usually annually) or by filing a voluntary disclosure. Once the reconciliation or disclosure is accepted, New Zealand Customs issues a confirmation letter and makes an assessment if any additional goods and services tax (GST) and customs duty result from the adjustment.

Under the new customs law, a “provisional value” system would be introduced for making post-importation adjustments. Under this new system, eligible importers would declare a provisional import value when the goods are initially cleared for import, and then would “true up” the declared value at a later time when all information required to finalise the value is available (for example, when the amount of the year-end transfer pricing adjustment is known). To be eligible to participate in the provisional value regime, the importer would need to satisfy certain requirements.


Read a March 2018 report [PDF 946 KB] prepared by the KPMG member firm in New Zealand

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